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Abstract

ISO New England proposes reserve markets designed to improve the existing forward
reserve market and improve pricing during real-time reserve shortages. We support all of the
main elements of the proposal. For example, we agree that little is gained by allowing reserve
availability bids in the day-ahead market. Doing so greatly increases the complexity of the
market without the prospect of more efficient pricing. Rather, offline reserves are most
efficiently priced and awarded well in advance, as is done by the improved forward reserve
market.